There may be a LOT of drama herein on the DELIVERIES - but smell the smoke

[HistoryStudent]

I think there may be a hell of an explosion herein like BACKDRAFT...

http://images.search.yahoo.com/searc...&fr=ytff1-sunm

It may pay you to be INFORMED because the BANKSTERS are POOPING bricks and they hurt....

http://harveyorgan.blogspot.com/

[andial]

One thing we know for sure is most miners have closed their hedge books and are no longer shorting. So besides them who else in the Gold business would take on such massive amounts of short positions, Jewelery fabricators? ETF's? We know the banks have big short positions but they are not doing it for legitimate hedging purposes since they have no Gold. So who else is there?

[HistoryStudent]

Ted Butler has always said: "there are four BIG banks shorting."

The problem is not the shorters: they have met the LONGERS - aka HUNG FAT, BY LO, and QUICKIE SHIPPE - all three are BILLIONAIRES

[British Sovereign]

Silver default argument has been claimed many times for many years.

[HistoryStudent]

Silver default argument has been claimed many times for many years.

I agree 100% with you but I am looking at the big situation too.

http://news.goldseek.com/GoldSeek/1291213139.php

Even old Noah preached for 120 years and only his YOUNGEST kids joined him on the huge floating ark.

You see for those 120 years (in fact for his whole lifetime then at 600 years old) it had never rained. That's why they lived so long: the oxygen was
50% more then; the magnetic field was many times more; the barametric pressure was HIGH like a special NFL (healing) chamber;
the earth was covered with a canopy like a huge glass globe; and there were around a BILLION people that had never seen rain.

But then it happened - some HOW the canopy broke and all the above changed. Probably NOAH had some other 30 kids he LEFT BEHIND.
So only a few really get it. I used to tell a number of people that gold and silver would rise ten years ago. There were many calling me NUTS!
But they stayed in the Dot.Coms, mortgages securities, homes, real estate, stocks, bonds, and other paper worth about 5% to 50% of it was then.

Broke on their ARCES like most of the world who follows the HERD waiting for the RAIN of dollars....
Oh yes,

Gold and silver - up around 500% - a NO BRAINER.

So yes it has never happened except in the other PRECIOUS metals like platinum and palladium - but it will.


Wait for the RAIN of dollars.

Remember only one out of 20 will believe you when you are PUN - right as rain...

[Sheepdog]

[joe_momma]

Dunno - only a maximum of 28 Moz of silver can be standing for Dec Delivery - in theory COMEX has ~44 Moz available (plus another ~80 Moz held for clients) they can cover December's longs. (Of course, the total open interest for all contracts is something like 500 Moz so perhaps they'd better find some more silver for the next delivery month pretty soon......)

[Concours14]

Hey, they took my Gold and are delivering RCM 100 ounce Silver this week. Hey, trading 1367.00 Gold for 27.10 Silver two nights ago is looking ok. All I know is (and remember, I don't know ****, I only see things) Gold goes up .4%, the Silver is up 3.2-4% on these bumps upward. I know, I know, the ratio. But I figured a little less gold and a LOT more Silver was the better part of valor.

What the Hell do *I* know anyway?

[bemac]

How did the 50:1 ratio come about? Who made that rule? Why shouldn't we question it?

[HistoryStudent]

Hey, they took my Gold and are delivering RCM 100 ounce Silver this week. Hey, trading 1367.00 Gold for 27.10 Silver two nights ago is looking ok. All I know is (and remember, I don't know ****, I only see things) Gold goes up .4%, the Silver is up 3.2-4% on these bumps upward. I know, I know, the ratio. But I figured a little less gold and a LOT more Silver was the better part of valor.

What the Hell do *I* know anyway?

CENTRAL FUND OF CANADA (CEF) in Canada has been BUYING at the 50 to 1 ratio for almost 10 years.

Imitation is the highest form of a complement...

It's best not to use rocket science on this: this way I figure one can always trade off silver toward a 30 to 1, or PERHAPS even a 20 to 1 ending ratio.

Silver should (shoulda woulda coulda) but honestly who in the hell really knows in advance besides the fact that the HUMAN NATURE of the RESTLESS
metal silver - has always acted like that for 500 years in England and America.

Study it for a few years and see...

I'd love to see BILLIONAIRES Hung Fat, Russ'in Red, and Laurence of Arabia - push that silver PUPPY over $29.00 tonight.

Gold at $1415.00 would be even more fun to tie the recent Platinum and Palladium runs...

[gnome]

Max Keiser:

The Fed offers no safe harbor for paper bugs
December 2nd, 2010 by maxkeiser
Respond
Jeffrey Lewis is a paper bug. Read this link and hear Lewis making the case for why the US dollar can be relied upon to hold its value and bail out JP Morgan when the time comes for JPM to cover their gargantuan, uncollateralized, precarious silver-shorts – now in the crosshairs of silver vigilantes globally like Eric Sprott who, as I have been told recently, was over subscribed for his recent 1/2 billion physical silver IPO by 400%.

Lewis says: “A play on monetary metals like gold and silver through the futures market is a play on the dollar and fiat currencies more than JP Morgan. Already, confidence in global currency is plummeting so quickly that the dollar is actually rising against a basket of currencies, never mind America’s own fiscal problems. In this race to the bottom, you can bet that even if the Fed has to soak up the whole of America’s debt to bail out JP Morgan, the deed will be done.”

Lewis seems to underestimate the intention and buying power of the global insurrection against banker occupation. There is no equilibrium point for prices of silver, US dollar, and JP Morgan stock that will satisfy the vigilantes. They are in it for the kill. Complete destruction of JP Morgan’s balance sheet is the goal and if Jamie goes running to the Fed than the Fed and the U.S. dollar will have to go down as well.


silvergod says: “This Lewis guy sounds like a crackpot.”

[HistoryStudent]

'Shock And Awe' In Precious Metals
Jeff Nielson
December 1, 2010
Earlier this month, precious metals investors witnessed arguably the most concerted take-down of the precious metals sector since the Crash of '08. First, investors were lathered-up into a mania, after World Bank head Robert Zoellick planted a piece in the Financial Times where he feigned interest in having a gold standard re-instituted.

Then the ambush took place.

This time, China was clearly participating as the 'tag-team' partner of the U.S. government. It began by raising reserve requirements for its banks - a move always seen as restraining the growth of an economy (and reducing commodities demand). Then the Chinese government leaked word that it was "planning interest rate increases" (even more bearish for commodities), all within the span of a couple of days.

What launched the "ambush", however, was the utterly unprecedented move by the CME Group (owner of the COMEX exchange) to radically increase margin requirements for silver halfway through a trading session. Clearly, the intent was to get precious metals investors as over-extended as possible - and then to "drop the hammer" on them at literally the best (i.e. most-damaging) moment.

This was immediately followed by yet another increase in bank reserves by China's government, mere days after the previous reserve-increase was announced. With the U.S. having already taken radical action to curb commodities markets, it is simply not plausible that the Chinese government suddenly decided that further tightening was necessary. Instead, this was a move purely intended to generate more downside momentum in commodities by China, the world's largest consumer of those commodities (including precious metals). And when those moves still did not generate the downward momentum desired by these market-manipulators, the CME Group announced yet another reduction of "margin" - this time for both gold and silver.

In previous years, a premeditated, orchestrated take-down of precious metals of this magnitude would derail the market for many weeks, if not months. However, that era is over.

Following the inevitable plunge of these commodities markets (as margin players were driven out), gold and silver quickly bottomed and firmed. This epitomizes the entirely different attitude of precious metals buyers. Whereas before such ambushes would create fear among investors that a "top" had occurred in the market, today all that goes through the minds of investors when precious metals go lower is "gold and silver are on sale!"

Buyers gleefully soaked-up every ounce of cheap bullion which the bullion banks chose to bestow upon them (as an early Christmas present). And now, with the month over, and "delivery" due in the COMEX, those buyers are saying "give us our gold and silver." While the numbers bounce around day-to-day, at present these buyers are wanting to take delivery on a large portion of total, available gold inventories and nearly ¾ of all available silver in COMEX inventories.

Though it was the bankster cabal which launched this 'shock' on the precious metals market (and precious metals investors), the only 'awe' that was experienced was that of the banksters, themselves, as buyers are now holding out their hands and demanding that the bullion banks deliver most of their dwindling supplies of real bullion. Much like pointing a bazooka at someone - and not noticing that you were holding it backwards - this ambush has now blown up in the faces of these bankers.

If these manipulative buffoons had the slightest understanding of these markets, the spectacular failure of their attempt to (once again) "cap" precious metals would have come as no surprise. As I write regularly, anything under-priced (like precious metals) will be over-consumed. Push the price even lower, and inventories will disappear that much quicker.

The example I have used previously is chocolate bars. Price chocolate bars at 10 cents each (which was their price before 40 years of banker-produced inflation destroyed the value of our currency) and store shelves will be quickly stripped bare. Yet in the convoluted fantasy-world of the bullion banks, if they saw store shelves being cleaned-out with chocolate bars at 10 cents apiece, their "strategy" would be to attempt to kill demand by pricing them at 5 cents.

In previous years, the banksters could avoid being punished for their total ignorance of commodity fundamentals. Armed with countless tons of bullion which Western central banks had foolishly leased to them, when the cabal drove down precious metals prices and buyers stepped in to load-up, they would simply drive prices even lower (by dumping yet more bullion onto the market) - until even the most ardent bulls capitulated.

Those days are gone, because the bullion is gone. Today, when bullion prices are driven down, and buyers step in to buy, it is the bullion banks who are now forced to capitulate. Much like a thug who points a revolver at someone - after the sixth shot is fired - the banksters now frighten no one in the precious metals market.

In the case of silver, the only "gun" now pointing at anyone is the gun which the bullion bankers are holding against their own temple (with a "silver bullet" in the chamber). As regular readers know, most of the total global stockpiles of silver (accumulated over roughly 5,000 years) are now gone. Used-up (in tiny amounts) in an infinite number of consumer and industrial goods, that silver can now never be economically recovered - unless/until the price rises to many multiples of the current price. Put another way, with gold now priced at roughly 50 times the price of silver, at some point before silver reaches $1400/oz, it will finally become valuable enough that industrial users will take measures to recover this silver, much like virtually 100% of all gold is recovered/recycled.

At the present time, the only message being sent (by the bankers) to silver's multitude of industrial users is "silver is cheap". With the bankers ensuring that silver is grossly under-priced, industrial demand is predictably soaring - up 18% year-over-year.

Readers must realize that these industrial users can obviously never be "frightened off" by cheap silver, but instead will simply increase their buying (as they have done). Having gotten industrial users 'addicted' to cheap silver, it is now up to the bullion banks to produce enough real bullion to satisfy the rabid appetite for industrial silver - or face the consequences: their own economic annihilation.

"Short" 100's of millions of ounces of silver, JP Morgan is already facing $billions in losses on that part of their holdings, alone. However, after squandering their bullion inventories, the banksters turned to the derivatives market to use paper leverage to continue to manipulate prices.

Thanks to the CPM Group's Jeffrey Christian, we have a rough idea of precisely how leveraged is that short position: about 100:1. So when JP Morgan starts with $billions in losses, and leverages that 100:1, the bottom-line is bankruptcy. And the harder these knuckle-draggers push-down on the market (thinking they are limiting their losses), the sooner the last bar of silver is gone - and with it, JP Morgan.

With available silver now nearly gone, we are very close to (if not already at) the point in time where industrial users make a frantic effort to buy and hoard every ounce of silver that they can lay their hands on, and soaring prices will only make them buy faster. Understand that the pretext of raising margin requirements in the silver market was to restore "order" to that market. Instead, because this move was motivated by corruption and malice rather than market fundamentals, raising margin requirements (and creating a "sale" for silver) is creating much more disorder - and rapidly setting the stage for an actual default (a fail to "deliver") in the silver market.

It is because of this total reversal in attitudes (and the depletion of bullion inventories) that I continue to urge investors to "think like the big buyers". They want to see bullion prices fall, because they know inventories are depleted, and any pull-backs will be shorter and shorter.

When bullion prices fall, gold and silver are "on sale". Period. And as we are always reminded when any retailer advertises a sale, buy now - because quantities are limited.

Jeff Nielson

www.bullionbullscanada.com

[RichG]

It seems to me that over the last year the 'weekend speculators' have slowly left the market, many with their asses handed to them as they hit the exit. What is left is 'us' (physical) and 'them' (paper), and we don't fall for the games. The take downs are less devastating and deep, and are seen as buying opportunities for the us's. To me this is the strongest indicator that the game is up. The physical's are now powerful enough to call the bluff. It doesn't make any difference how many paper shorts there are ... all it takes is enough longs demanding delivery to empty the coffers, then game over. There seems to be a whole lot of smart folks out there, with a lot of money that they want protecting, that have wised up to the whole 'stored value' concept. One grain of silver/gold can soak up all the 'nothings' ever created.

I think ... game over, and about time.